Under the Finance (Local Property Tax) Act 2012 as amended by the Finance (Local Property Tax) (Amendment) Act 2013, a local property tax charged on the market value of all residential properties in the State, came into effect on the 1st July 2013. A half year payment is due in July 2013 with the full amount being payable thereafter. A residential property is any building used or usable as a dwelling with up to one acre of ground. The tax is calculated on your own assessment of the market value of your property as at the 1st May 2013 and this valuation remains valid until 2016.

All owners of residential property, people with a lease of 20 years or more, local authorities or social housing organisations, people with a life interest or a long term right of residence, executors and administrators of estates, trustees or beneficiaries are all liable under the new legislation.

The Revenue posted a form out to all households in March 2013, which was to be returned by 7th May 2013, if completing the paper version, or the 28th May 2013 for online applications. If the forms were not submitted by the aforementioned dates, the revenue will estimate the value of your home.

The tax is calculated as follows:

  1. Take the value of your property
  2. See what band it fits into in the table below
  3. Take the midpoint of that band and get .18% of that figure

Band

Value of Property

€

Mid Point

Rate

Amount Payable for full year*

1

0-100,000

50,000

0.18%

90

2

100,001 – 150,000

125,000

0.18%

225

3

150,001 – 200,000

175,000

0.18%

315

4

200,001 – 250,000

225,000

0.18%

405

5

250,001 – 300,000

275,000

0.18%

495

6

300,001 – 350,000

325,000

0.18%

585

7

350,001 – 400,000

375,000

0.18%

675

8

400,001 – 450,000

425,000

0.18%

765

9

450,001 – 500,000

475,000

0.18%

855

10

500,001 – 550,000

525,000

0.18%

945

11

550,001 – 600,000

575,000

0.18%

1,035

12

600,001 – 650,000

625,000

0.18%

1,125

13

650,001 – 700,000

675,000

0.18%

1,215

14

700,001 – 750,000

725,000

0.18%

1,305

15

750,001 – 800,000

775,000

0.18%

1,395

16

800,001 – 850,000

825,000

0.18%

1,485

17

850,001 – 900,000

875,000

0.18%

1,575

18

900,001 – 950,000

925,000

0.18%

1,665

19

950,001 – 1,000,000

975,000

0.18%

1,755

20

1,000,001 +

Taxed at Actual Value
  • The first 1,000,000
  • The portion over 1,000,000
  • 0.18%

 

  • 0.25%

 

 

*Note for the year ending 2013, only half the sum quoted is payable

The Local Government (Charges) Act 2009, as amended by the Local Government (Household) Charge Act 2011, has introduced a €200 charge on the owners of Non-Principal Private Residences. Individuals who own two houses will be required to pay a €200 fee in respect of the house that is not their principal place of residence.

A number of exemptions exist and these include;

  1. Where the property is the principal private residence;
  2. Where a person partly occupies a dwelling as his or her sole or main residence and avails of the Revenue Commissioner’s Rent-a-Room Scheme;
  3. Residential property owned by certain charities or comprised in a discretionary trust;
  4. Where a person is moving house and, in the process, owns two houses for a relatively short period;
  5. Joint ownership of a property after a divorce or separation where the second residence  becomes the primary residence of one party;
  6. Where a person who owns a principal private residence vacates the dwelling in question because he or she is long-term incapacitated as a result of physical or mental illness;
  7. Where a residence is occupied rent-free by a relative of the owner and the owner resides on the same property or within two kilometres of the residence in question;

It might be noted however, that those forced to move due to work or financial commitments are not exempt from this charge. In their annual report for 2012, legal rights group FLAC revealed a stark rise in the number of landlord/tenant issues. There was a rise of almost 70% in queries to its national telephone and referral lines in relation to such matters. The group has attributed this rise to the growing number of “Accidental Landlords”. “Accidental Landlords” are homeowners who are forced to rent out their homes in order to meet their mortgage repayments. Such “Accidental Landlords” may not be aware that by renting out their home they will become liable under the aforementioned legislation for the Non-Principal Private Residence Charge.

If you have any query whatsoever in relation to Local Property Tax in Ireland please feel free to contact us on 091 582942 or drop us an email at info@gns.ie